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Alibaba's AI Video Model Climbs to No. 2 Globally as Sora and Seedance Fade

Alibaba's AI video generation model has risen to No. 2 in global rankings, overtaking OpenAI's Sora and ByteDance's Seedance, according to VentureBeat. The leap underscores how quickly Chinese labs are closing -- and in some categories leading -- the gap with US frontier players in generative media.

No. 2 global
New Rank
Alibaba
Lab
Sora, Seedance
Surpassed
AI video generation
Domain
TC
Trace Cohen
Early-stage VC & angel · Founder, New York Venture Partners
June 22, 2026
1 min read
KEY TAKEAWAYS FOR VCs & FOUNDERS
1

Chinese labs are now setting the pace in generative video, not just chasing US leaders

2

Rankings shifting this fast show how unstable category leadership in AI media has become

3

Alibaba's rise pressures Sora and Seedance on quality, cost and openness

4

Generative video is a strategic front in the US-China AI competition

TC
The VC Read · Trace's TakeTrace Cohen

The story everyone in the US keeps underrating is how fast Chinese labs are moving in generative media, and a No. 2 global ranking for Alibaba's video model is a wake-up call, not a fluke. The strategic edge isn't just quality -- it's that Chinese players tend to ship cheaper and more openly, which is exactly how you win developer mindshare in a category where leadership flips every release. For founders building on video models, the lesson is don't marry one provider; the leaderboard is reshuffling quarterly. Watch pricing -- that's where this competition actually gets decided.

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Alibaba's AI video generation model has climbed to the No. 2 spot in global rankings, leapfrogging OpenAI's Sora and ByteDance's Seedance, which have slipped down the leaderboard, according to VentureBeat. The move is a marker of how rapidly Chinese AI labs are advancing in generative media.

For much of the past two years, US labs were assumed to hold a comfortable lead in text-to-video. Alibaba's ascent challenges that assumption and shows that leadership in the category is volatile -- models can rise or fall in the rankings within a single release cycle as quality, speed and cost all improve in leaps.

“2 spot in global rankings, leapfrogging OpenAI's Sora and ByteDance's Seedance, which have slipped down the leaderboard, according to VentureBeat.”

The competitive implications cut in several directions. It pressures OpenAI and ByteDance to respond on capability and price, it strengthens Alibaba's position in the global generative-AI market, and it sharpens generative video as a front in the broader US-China technology rivalry -- one where openness and accessibility may matter as much as raw quality.

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Originally reported by VentureBeat. Analysis and editorial commentary by Value Add Pulse.

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@Trace_Cohen·t@nyvp.com